libra
Analysis

Is Libra the biggest threat to Bitcoin?

Considering that Libra is likely to be released in June and that the Association that leads the project is recruiting new members, we must analyze it.

When Facebook revealed that this year it would unveil Libra, Bitcoin’s rival, the cryptocurrency community was stunned. The subsequent international reaction against the announcement served both to vindicate Bitcoin and to worry us. With several government financial chiefs opposing the idea.

Although some of the initial members of the project have abandoned it, Facebook and its CEO Mark Zuckerberg are not ready to give up yet. 

What happened to the members and sponsors of the Libra Independent Association?

A week ago, the Libra Independent Association revealed its most recent recruitment, adding a member for the first time since many of its largest corporate sponsors abandoned the initiative. 

Vodafone, for example, withdrew from the project last month to focus on its own digital payment system, while the participation of former members of the Association, Visa, MasterCard and PayPal, was always somewhat mysterious.

The official reason why many of the founding members of the Association withdrew from the project was due to the fierce regulatory response to the project.

 For example, the president of the United States, Donald Trump, tweeted his opposition to it and other more recognized cryptocurrencies, including Bitcoin. Likewise, his Treasury secretary called Bitcoin a “national security risk.”

Facebook itself is not part of the Association, a government council for the cryptocurrency but, its subsidiary Calibra, a digital wallet for Libra tokens is.

What company is the new member of the Association?

It has been announced that the new member that supports Libra is the Canadian e-commerce platform Shopify.

Shopify has about 1 million companies from 175 countries on its digital platform. In addition, it will join other members of the Libra Association to contribute at least 10 million dollars. Additionally, it seeks to operate a node that processes transactions for Libra. 

As a member of the Libra Association, we will work collectively to build a payment network that facilitates access to money and supports merchants and consumers around the world, they sentenced from Shopify.

The price of the Libra, which had been forecast at a very high level in the first half of 2019, fell almost to half its value a few months later. 

However, the Libra Association has been working to address the concerns of regulators. There have been press releases where the organisation has said that it plans to work closely with regulators before the launch of the cryptocurrency.

What have Libra executives said about it?

Following the news that Shopify would join the Association, Libra communications chief Dante Disparte said the group was “proud” to welcome its new member. ‘This association has 21 members’.

Specifically, he stated that Shopify joins an active group of Libra Association members committed to achieving a safe, transparent and easy implementation for the consumer. In short, it seeks to achieve a global payment system that breaks financial barriers for billions of people.

If Libra, whose launch is scheduled for the month of June, is able to achieve these ambitious goals, even the biggest Bitcoin supporters might have doubts about the leading coin. 

That is, they will find it much harder to convince others that the world needs Bitcoin. And you? Would you change your mind about Bitcoin if Libra emerges successfully?

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